Anbang set to scrap Fidelity & Guaranty Life deal

The headquarters building of Anbang Insurance Group are pictured in Beijing, August 25, 2016.[Photo/Agencies]

Anbang Insurance Group has walked away from a deal to acquire United States annuities and life insurer Fidelity & Guaranty Life for $1.6 billion after failing to get the necessary regulatory approvals, Reuters reported.

This is another setback after Anbang abandoned its $14 billion bid for Starwood Hotels & Resorts Worldwide last year.

Fidelity & Guaranty Life had extended its merger agreement with Anbang to April 17 after it was set to expire on February 8. Had Anbang secured a public hearing with Iowa's financial regulator by April 17, it could have extended the expiration date to May 31, Reuters said, citing people familiar with the matter.

However, Anbang could not meet the conditions for any further extension, the sources said. Meanwhile, Anbang has to obtain approval from New York regulatory authorities, and it appears to have given up on that, Reuters added.

The sources did not disclose the reasons why the deal was unlikely to receive approval from US state regulators, but added Anbang refused to disclose some information required by regulatory authorities.

Established in 2004, Anbang Insurance Group, a little-known Chinese insurer several years ago, has been at the forefront of a record wave of overseas acquisitions by Chinese companies.

Anbang purchased New York's famed Waldorf Astoria Hotel in 2014. It also bought the Belgian banking operations of Dutch insurer Delta Lloyd NV, Belgian insurer Fidea Assurance and Dutch insurance company VIVAT.

Last year, it signed an agreement to buy South Korea's life insurance and investment unit Allianz SE's for more than $3 million.

Last month, Anbang denied a Bloomberg report that it is investing in a flagship Manhattan office tower owned by the family of Jared Kushner, US President Donald Trump's son-in-law and senior adviser.

Agencies contributed to this story.